Hospital CEO gives details of affiliation with OSF

Thursday

Nov 22, 2012 at 7:44 PMNov 22, 2012 at 7:46 PM

Kewanee Hospital could expand services

Dave Clarke

Both Kewanee Hospital and OSF HealthCare System have begun the preliminary steps of a three-year process working toward a partnership which will benefit both parties in the future, according to hospital CEO, Lynn Fulton.Fulton outlined what’s ahead at Tuesday’s meeting of the Kewanee Rotary Club.An announcement was made Nov. 6 that a letter of intent had been signed to affiliate the local hospital with the larger, integrated health care system.OSF HealthCare consists of seven acute-care facilities, including OSF St. Francis Medical Center in Peoria; one long-term care facility; and two colleges of nursing. All but one of its facilities are in Illinois.“It was the right people at the right time,” Fulton said of the decision to select OSF as a health care partner after “casting a wide net” of national scope.She said hospital officials began the process of looking at options in 2010 to address the long-term impact of health care reform on the community and the nation. A letter of agreement has been signed by Kewanee Hospital and OSF with both working toward a final partnership in a process which will take about three years. Lynn said affiliation will allow the hospital to offer services becoming increasingly difficult to provide as an independent facility. The hospital will remain autonomous, she said, with its own advisory board and administrative staff. There will also be better coordination of care, she said, between Kewanee, OSF, and other affiliated hospitals.“We wanted to pick a partner that would be an asset to the community and to whom we would be mutually beneficial,” said Fulton. “We wanted local autonomy and they want to build on what we have,” she said. “They will expand what we have, not take away.” She said the name of the hospital will eventually change and have an OSF prefix, but will remain a non-profit 501c3 organization. She said OSF is tax exempt and the local hospital should also continue to have that status after an application to the Illinois Department of Revenue is approved. During a question and answer period, Fulton was asked if OSF is actually buying the hospital. Fulton said what will take place is not a “true purchase,” but a “joining of assets.” She said the hospital will continue to maintain its own balance sheet and all donations, bequests and other gifts will continue to be accepted, maintained and remain under local control. Kewanee Hospital employees will become employees of OSF with salaries and benefits.Asked if there was a chance the birthing center closed down two years ago at the hospital might reopen as a result of affiliation with a larger system. Fulton said that was not likely since the center would still be operating at a loss to the local hospital. After it lost close to $2 million over a three-year period, the hospital closed the birthing center in July of 2010.“In the end, it’s the right — and best — thing for the future of our community,” she said.